Exercise 1-12 Identifying effects of transactions on the accounting equation LO P1 Select a transaction that effects the accounting equation as follows: Transaction Effects a. The company purchases equipment for cash. b. The owner invests land in the business The company provides services and sent a bill for $500 to be received within 30 C. days. d. The company purchases supplies on credit e. The owner invests cash in the business. 1. The company purchases supplies for cash